Client has 2 very distinct businesses operating under 2 limited companies. Both are below VAT registration threshold. They operate separate bank accounts etc etc.
He now wants to put both companies under control of a holding company.
From a VAT perspective...
1. is the turnover limit still on a company by company basis or a group basis?
2. does the group structure increase the likelihood of HMRC issuing a disaggregation notice?
Thanks
Replies (2)
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VAT registration turnover limits apply to each legal entity not the group. Why should they consider it disaggregation if they are two disctinct businesses??
The fact that the two companies are owned by the same holding company does not oblige them to become a VAT Group. That is the Client's choice.